The Hindu Business Line : `Climate right for investments in steel sector'

The Union Steel Secretary, Mr Manoranjan (centre), flanked by the Joint Secretary, Mr S.N. Dash (right), and the VSP Chairman and Managing Director, Mr Y. Siva Sagar Rao, at a press conference in Visakhapatnam Steel Plant on Thursday.

Visakhapatnam , June 30

THE steel sector is upbeat and the climate is congenial for the corporates to make investments in the country, especially in the mineral-rich States of Orissa, Jharkhand and Chhattisgarh, according to Mr Manoranjan, Union Steel Secretary.

At a press meet in the Visakhapatnam Steel Plant here on Thursday, he said the international prices of steel had shot up to $600 a tonne and subsequently come down by $150 per tonne. "In tune with the international trend, the Indian steel companies have also reduced prices. There may be a further slight price reduction and then the prices are likely to stabilise," he said.

He said international companies were evincing interest in setting up steel plants, especially after the Posco-Orissa Government deal.

"It is really a shot-in-the arm for the sector. The investment fervour has picked up after the deal," he said.

Steel policy: He said the draft national steel policy would be submitted to the Cabinet in July. The recommendations of the R.K Dang committee on iron ore mining leases would also be submitted to the Cabinet. Guidelines would be framed later for the optimum utilisation of the mineral resources in the country.

VSP expansion: Mr Manoranjan said the expansion plan of Rashtriya Ispat Nigam Ltd (Vizag Steel Plant) had been passed by the Public Investment Board and was awaiting Cabinet approval. "Though no time frame can be set, we are expecting the approval within two months or so.

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